4 Advantages of Document Management Systems
The document management systems can collect, retrieve, and store important documents that reduce storage space.
FREMONT, CA: Documents are an essential component of every organization, whether electronic or paper. It can be a difficult task to handle business knowledge, often from many sources. A document management system (DMS) that collects, stores, and retrieves both paper and electronic documents can give the organization several vital benefits, depending on the nature of the enterprise. Here are some of the advantages of DMS.
Reduced Storage Space
Commercial property expenses are rising, and so is the cost of holding paper documents. For any organization, a software-based DMS can decrease the necessity for file cabinets, boxes, and storage bins is an asset, freeing up valuable office space. In less costly environments, like an offsite warehouse or vault, records that must be preserved as hard copies may also be stored.
For organizations of any size to keep sensitive data protected, document security is essential. DMS offers better control over sensitive documents, and for various groups or individuals, access to documents can be controlled at the folder level. DMS leaves an audit trail of who and when it was accessed and how it might have been updated. Managed documents can be tagged to allow automatic alerts and are highly traceable.
Improved Regulatory Compliance
Compliance specifications for such records can be complicated. Non-compliance can result in fines, licenses being revoked, and, in some cases, criminal liability. Strict protection and privacy requirements are required by federal and state regulatory regulations like Sarbanes Oxley and HIPAA. DMS minimizes the danger of non-compliance. For example, retention schedules for records can be automated, and new documents can be classified and stored more easily.
With DMS, it can be a lot easier to share information and collaborate. It is possible to access documents captured from various sources from multiple locations. Electronic imaging makes it possible to share documents through email or the Internet over a network. DMS offers business processes with greater visibility and can lead to better monitoring of workflow. It is possible to allow and track permitted access by external users. DMS also provides Version Control, which enables the recovery of older versions of the same document. If many parties work on the same form and there are modifications made to a document that were not approved or planned to happen, this functionality is critical.